Transamerica
offers a long-term care (LTC) rider that can be added to certain life insurance
policies, and we still retain a legacy block of standalone LTC insurance. We
support the work of the NAIC to develop a harmonized process and actuarial
methodology for the assessment of LTC rate increase requests on existing
policies. Transamerica is actively engaged in advocacy efforts to support
the prompt harmonization of LTC rate increase processes and methodologies.
Genetic Testing
Insurers, including Transamerica, use genetic testing information as part of the underwriting of life, disability, and long-term care applications when such information appears in applicants' medical files. Legislation has been introduced in multiple states that would restrict or prohibit our use of genetic testing information. Transamerica opposes such legislation as it would create an imbalance between the information known by the applicant and that available to the insurer for underwriting, which could lead to additional risk and losses by insurers and consequently higher premiums for all future insureds.
Supplemental Health
Transamerica sells a number of supplemental health insurance products, which are designed to provide a cash indemnity benefit if the policyholder satisfies the triggers for coverage. Depending on the type of policy purchase, these triggers might be satisfied when the insured is hospitalized or is diagnosed with a specific disease such as cancer. Transamerica supports the inclusion of supplemental health policy in employer cafeteria plans.
Policy Illustrations
Transamerica supports policy illustration rules that help consumers determine the policy that is best suited for their needs. To this end, we support illustration rules that help consumers understand the mechanics of a policy, as well as the risk and reward trade-offs of a policy being considered for purchase.
Transamerica also supports illustration rules that promote a level competitive playing field. No product or product feature should be unfairly advantaged or disadvantaged simply by virtue of the illustration rules.
Finally, Transamerica supports applying the same illustration rules to both new sales as well as inforce contracts. In this way, consumers get consistent information regardless of whether they are considering a new policy or reviewing the performance of an existing policy.